Archive | Central Banks

Never go full retard: Bloomberg calls for “helicopter money”

Clive Crook, a member of Bloomberg View’s editorial board, has gone where the sensible have long feared to tread.  In today’s Bloomberg View, he recommends stimulating the economy by just giving everyone free money. Crook also may have set a Bloomberg View record for getting everything so wrong, so quickly.   By his third sentence Clive is clearly lost. […]

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Stanley Fischer’s statement of the obvious: “Bankers should be punished for financial crimes”

Federal Reserve vice chairman Stanley Fischer’s speech yesterday met with disbelief and snickers when he announced that those who commit financial crimes should “suffer”. So where was Mr. Fischer back before the statute of limitations on the largest crimes ran out? Of course, we know. He was busily destroying the US economy with a deadly cocktail of unproven, fringe economic […]

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Bank of England: Raising rates is outside of “political reality”. Wait… what?

Mark Carney shot back a direct refusal to the BIS’ recommendation to raise rates today, saying “Raising rates is outside of political and economic reality”. Mark Carney has rejected calls by the Bank for International Settlements (BIS) for a swift return to normal interest rates, lambasting the lauded Swiss institution for operating “in a vacuum” and “outside political and […]

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Central banks speculating in equity-markets: What could possibly go wrong?

Yesterday, in Congressional testimony Janet Yellen apparnetly felt it was within her mandate as Chair of the Federal Reserve to slap a “sell rating” on social media stocks and bio-techs. The smack-down of two sectors certainly raised eyebrows. Why?  Because it was one more disturbing sign of increasing Federal Reserve involvement in equity markets.  The big question […]

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Must Watch: Warren destroys Yellen’s position on “Too Big to Fail”.

This dialogue hasn’t received nearly as much attention as it deserves. As we predicted this morning, Warren would grill Yellen over TBTF.  And Yellen would do little more than say the Fed is “looking into it”. Sure enough, Yellen repeatedly attempted to deflect the issue.  Warren was having none of it. This single clip summarizes the entire […]

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Rick Santelli vs. the Talking Heads

Today’s pro-Fed vs. anti-Fed showdown on CNBC was highly entertaining and highly infuriating all at the same time. Here’s the problem with the closing argument: Those that argue that ‘the market has risen ergo the Fed has succeeded’ not only misunderstand the role of the Federal Reserve (as Santelli pointed out), or to whom the benefits […]

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They learned nothing: The Bank of England is already pushing for more banking deregulation

Even though the Basel banking-regulations are adhered to by all European banks, England’s largest banks have special permissions to use custom “bespoke” models when calculating their loan-loss reserve requirements rather than the standard Basel risk-weights that smaller banks are forced to use. What does this mean?  It means large UK banks have an enormous advantage over smaller banks as they don’t […]

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NotQuant’s response to Mish’s Response to NotQuant

Yesterday, we read Mike Shedlock’s response to our piece Is the Fed Going to Initiate A Controlled Collapse with interest. He called our piece “complete silliness” and then attempted to deconstruct our logic with this silliness: Mish wrote: Does the Fed know the difference between an asset bubble and my mom’s tuna casserole? Does the Fed know the […]

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What would mainstream economists have advised Bernie Madoff to do?

Just over two weeks ago, Bernie Madoff’s accountant finally plead guilty to fraud after six years of defending himself. He was sentenced to 30 years in prison at the age of 78. While he admits to falsifying records, to this day he claims he had no idea that Madoff was running a ponzi scheme. The prosecution has called […]

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European Bank Kabuki Preview: Spoiler alert!

European banks are bracing themselves for another slap on the wrist and stern language, as the next round of sham “stress tests” begins.   We’re not quite sure who exactly is stressed, but our inkling is that it should be the taxpayers.  Thankfully, the ECB is hoping to avoid actually penalizing any banks by “prepping” them for the […]

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Europe’s solution: Would you believe $1.4 TRILLION in free money for banks?

Remember at the “end” of the financial crisis when everyone from Timothy Geithner to Barack Obama to assorted members of British Parliament promised that “Never again” would anyone need to hand trillions of dollars to bail-out banks?   That was just a one time thing, right? We’re all past that now. Right? Wrong.  Well, at least not […]

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Central banks promise to be less clear

So much for the era of central bank clarity.  That went by quickly.  Today,  it looks like we will be returning to a Greenspan-like era of riddles, double-speak and meaningless gobbledygook.  Fed utterances will once again require “parsing” by “Fed experts” as central-bank chiefs return to “telegraphing” their intentions to a mystified media. The world’s major central banks […]

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Did the “central banks’ central bank” just call for a stock-market collapse?

Don’t look now, but the Bank for International Settlements (BIS), which is often referred to as the “central banks’ central bank”, just advised the world’s central banks to stage a market collapse now rather than later. For anyone claiming that the many global critics of central banks are a “bunch of doomers”, that argument has now been […]

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